MITI in the News

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MITI in the News

Malaysia’s Aerospace Industry Sets to Soar to Greater Heights

Malaysia’s aerospace industry has grown significantly and has provided more than 19,000 jobs opportunities - mostly in the MRO and manufacturing sectors with the active participation of our local small and medium-sized enterprises. Total number of companies in operation has reached more than 160. The aerospace industry is a high-value industry in Malaysia’s diversified economy. The total revenue generated by this industry currently stood at RM11.8 billion.

By 2030, the industry is projected to contribute revenue of RM20.4 billion for Maintenance, Repair and Overhaul (MRO), RM21.2 billion for aero-manufacturing and RM13.6 billion

for engineering and design services. In 2015, four projects were approved with total investment worth RM5 billion – in which RM4.9 billion was from domestic investment while the remaining RM30.6 million came from foreign direct investment.

Meanwhile, our total trade for aerospace products in 2015 stood at RM14.2 billion. The exports of Malaysia’s aerospace products, recorded a significant increase of 44.7% from RM2.9 billion in 2014 to RM4.2 billion last year. The exports breakdown is as follows – composite parts and components (RM4.07 billion), aerospace communication system and parts, and avionics (RM86.8 million) and aircraft propellers and rotors (RM3.1 million). At the same time, our imports had decreased by 33.5% from RM15.1 billion to RM10 billion within the same period. Our imports were made up of aircrafts (RM4.06 billion), parts of aircrafts (RM5.55 billion) and helicopters (RM410 million).

International Trade and Industry Minister Dato’ Sri Mustapa Mohamed said, “Despite the encouraging increase in exports, the amount of imports is still bigger than our export. We need to focus on building the production capacity of our local suppliers, which in turn would help boost our exports and close this trade gap,”

The growth of Malaysia’s aerospace industry is in tandem with the trends within the Southeast Asia region as a whole. For example, Singapore has recorded an average growth of 10% in its aerospace industry over the last two decades. Thailand is also developing an aerospace industrial estate, in which once its fully completed and operational, is expected to generate USD1.5 billion every year for the country.

“Against this backdrop, it is imperative that we continue to identify and develop key areas which could improve the dynamic and competitiveness of our aerospace industry in comparison to our regional peers”, Dato’ Sri Mustapa added.

Malaysia as part of the global aerospace industry supply chain

Currently, Malaysia is among the critical suppliers for aircraft structure components mainly for Airbus and Boeing. Last year, the Composite Technology Research Malaysia (CTRM)

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Ministry of International Trade and Industry, 28 March 2016

secured two long-term contracts from Spirit AeroSystems and UTC Aerospace Systems totalling RM10 billion. Dato’ Sri Mustapa explained, “There are currently about 7,000 units of A320 aircraft flying around the globe, in which at least 5,000 of them are built with components produced in Malaysia. For instance, many may not know that 40% of the wing components are being produced in Melaka and assembled in Subang, which is testament to our firm footing within the global supply chain”.

Our involvement is also not limited to just producing to aero-structures, as we are now entering into aerospace engine components manufacturing through the on-going collaboration between UMW and Rolls-Royce. Under this collaboration, UMW Aerospace will enhance its capability to be the single source Tier 1 supplier for Rolls-Royce, specifically for its Trent 1000 and Trent 7000 aircraft engines. These commitments showed that Malaysia has what it takes to become the preferred partners to the Global industry leaders.

Another project initiated in 2015 that will benefit the local industry is the Airbus Tooling Supply Chain Programme for complex in service repair tooling, which has been outsourced to SDMK Sdn. Bhd., a new Malaysian tooling supply chain. SDMK currently manufactures jigs for composite repair of aircraft rudders and elevators for the A320 and A330 aircraft manufactured by Airbus. Under this programme, SDMK also works with another local company, WZS Technologies Sdn. Bhd to produce the detailed parts and components;

thus establishing the tooling supply chain for Airbus in the country.

“With this, a Malaysian company will, for the first time, build its capacity and competence in a new area and be part of the international tooling supply chain, laying the foundation for the establishment of an ecosystem for tooling development in the country,” Dato Sri Mustapa noted.

The appointment of new Head of NAICO

Separately, after chairing the first meeting in 2016 of the Malaysia Aerospace Council (MAC), Dato’ Sri Mustapa announced the appointment of Mr. Shamsul Kamar Abu Samah, CEO of Aerospace Malaysia Innovation Centre (AMIC) as the Head of the National Aerospace Industry Coordinating Office (NAICO) starting from April 1.

“With 20-years of experience in the aerospace industry, Mr. Shamsul is knowledgeable about the industry, which is a vital component of our drive to make Malaysia a high-income nation by 2020. His leadership skills will be crucial in helping NAICO to implement the relevant initiatives drawn up by the Government and in working closely with industry players and other stakeholders to further develop the industry,” Dato’ Sri Mustapa said.

The launch of MAIA

Prior to the meeting, Dato’ Sri Mustapa has also launched the Malaysia Aerospace Industry Association (MAIA), a non-governmental organisation and functions to support and represent the voice of all Malaysian companies in the aerospace sector in our efforts to develop Malaysia’s status as the aerospace hub in Asia, particularly in ASEAN. MATRADE as the national export promotion agency will play a main role as the association’s lead facilitator.

Dato’ Sri Mustapa noted that, “The role played by MAIA will be crucial in delivering the industry insights to policy makers as we continue to chart the growth of Malaysia’s aerospace industry. This partnership will ensure that the Government’s policies are in line with the views of industry players,”

MAIA will be led by Mr Naguib Mohd Nor, CEO of Strand Aerospace Malaysia Sdn Bhd, as the association’s pro-tem president. The pro-tem committee of MAIA comprises top management of member companies who are entrusted to draw the guidelines for the group with an emphasis on capacity development and international market penetration.

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Media Statement by the Minister of International Trade and Industry on the Current State of Proton

The decision made by the Government to go into heavy industries, including the automotive sector, in the mid-1980s was a bold and courageous one. However, the Government cannot continuously protect these industries. Other countries such as Japan and South Korea have protected their automotive industry, but these measures were short and medium term in nature and were eventually abolished. Proton, which is our national car project, needs to graduate from this protection.

Since I became the MITI Minister in 2009, I have been briefed by the Senior Management of Proton of the issues and challenges faced by the company on a regular basis. I have met with both the previous and current management teams and shareholders of the Company.

In 2009, the Company presented to me its restructuring plan which aimed to improve the quality of its cars, to boost exports and to make Malaysia a hub for the automotive industry in the region. In 2012, following the takeover of Proton by DRB Hicom, the new owners came to see me and they presented another restructuring plan to make Proton more competitive.

They also highlighted a number of ambitious plans to boost exports.

The National Automotive Policy in 2009 clearly stated the need for Proton to team up with strategic foreign partners. In this extremely competitive line of business, there is a need to set aside high capital resources for Research & Development (R&D). Scale is also crucial.

Proton currently has neither of them. The problems faced by Proton are very challenging.

The company’s share of the domestic automotive market hit a peak of 74% in 1993, but currently hovers at 15%.

Since its establishment in 1983, the Government has provided grants, various forms of assistance as well as taxes forgone to Proton to the tune of about RM13.9 billion in total.

There has been intense discussion between MITI and the Senior Management of Proton on the future of this company in the past six months. Proton’s Management has also made a number of presentations to the Economic Council chaired by YAB Prime Minister.

Our observations on the current state of Proton are as follows:

• The company is a relatively small player in the global context and thus not able to compete with other foreign companies unless it can substantially increase its exports

• Proton is suffering a problem of underutilization – about 35% of the available capacity in each of its two production plants is being utilised. The decision to have two plants is probably one of the mistakes made in the past by Proton.

• About three years ago, Proton almost struck a deal with a renowned foreign player but at the last minute decided not to proceed with the proposal. Had this collaboration been realized, we may have seen an improved performance by Proton in the subsequent years.

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Dato’ Sri Mustapa Mohamed, 1 April 2016

Malaysia currently has two national car projects namely Proton and Perodua. The latter turns out to be a more sustainable model. Perodua Manufacturing, which is 49% owned by Malaysian shareholders including PNB, has a joint-venture with Daihatsu and Toyota, and is a profitable company.

Last year, a number of Proton vendors came to see me on a few occasions and shared their problems. Following that, MITI injected RM100 million to provide soft loans to alleviate their burden. Even then, it has come to my attention that some of the vendors may face serious challenges if Proton continues to operate at the current level of production and sales. A few of them might be out of business in the next three to four months.

In view of the very serious nature of the problem, the Government believes that the current business model adopted by Proton is not sustainable. The Government has been seriously deliberating Proton’s request for assistance for grants and soft loans. It is a major request and the Government needs to be thorough with its evaluation as a lot of public money is involved. We need to be particularly prudent in allocation of resources at this time when our national revenues have been seriously impacted by falling oil and commodity prices.

Having said that, I would like to assure Proton employees, vendors and the Proton ecosystem that their interests will be taken into consideration before we make any decision on its request for assistance.

If the Government decides to assist Proton, this would be made subject to several conditions including:

• Proton needs to immediately identify a strategic foreign partner

• The Company must be professionally managed

• There must not be any interference in its business

• Some tough but necessary measures must be put in place for the long-term sustainability of Proton

I have been informed that there were instances when Proton appeared to be unprofessional in its decision-making process. In order for the Government to consider providing financial assistance to Proton, it is important that a competent leadership team be appointed in the company.

We note the decision made by Tun Mahathir to relinquish his position as the Chairman of Proton. While we recognise the contributions made by Tun Mahathir throughout his Chairmanship of Proton, we must not turn a blind eye to challenges faced by Proton and its inability to establish a solid financial footing.

In this regard, we hope that the new Chairman and Senior Management of Proton will help towards enhancing the true potential of Proton and pave the way towards a better future for the company.

The Government remains committed to ensure the continuous growth and development of the domestic automotive industry which would include the transformation of Proton and its ecosystem.

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Malaysia

Working Age Population

¹

Labour Force

^(persons)

21,636,200

14,652,000

Labour Force Participation Rate

²

(%)

67.7

Outside Labour Force

³^(persons)

6,984,200

Notes : ¹Age between 15 to 64 years

2Labour force participation rate is defined as the ratio of labour force to the working age population, expressed as percentage.

3All persons not classified as employed or unemployed such as housewives, students (including those going for further studies), retired, disabled persons and those not interested in looking for job.

4 Unemployment rate is the proportion of unemployed population to the total population in labour force.

Employed

^(persons)

14,150,500

Unemployed

^(persons)

501,500

Unemployment Rate

⁴

(%) 3.4

Labour Force

14,652,000

Source : Department of Statistics, Malaysia

Labour Market, January 2016

persons

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Labour Market Trends, January 2014 - January 2016

13,529.9 13,440.9 13,427.8 13,503.1 13,646.3 13,624.3 13,588.8 13,546.5 13,726.5 13,702.6 13,707.8 13,748.4 13,601.6 13,664.3 13,760.9 13,767.8 13,763.2 13,837.6 13,765.9 13,865.2 13,881.0 13,903.5 13,899.2 14,185.7 14,150.5

13,000 13,200 13,400 13,600 13,800 14,000 14,200 14,400

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

2014 2015 2016

Persons ('000) Employed

457.7 446.4 415.7 407.2 406.5 385.8 394.1 379.7 377.2 378.2 375.1 432.1 442.0 454.9 430.8 429.0 438.0 449.9 459.9 453.6 460.6 450.8 453.3 504.3 501.5

0 100 200 300 400 500 600

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

2014 2015 2016

Persons ('000) Unemployed

67.8

67.4

66.9 67.3

67.9

67.5 67.4

67.1 67.9

67.4

67.5 67.9

67.2 67.4

67.7 67.6

67.5 67.8

67.9 67.9

67.7 67.9

67.7

66.8 67.0 67.2 67.4 67.6 67.8 68.0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

2014 2015 2016

% Labour Force Participation Rate

3.3 3.2

3.0

2.9 2.9

2.8 2.8 2.7

2.7

2.7 2.7 3.0

3.1 3.2

3.0 3.0

3.1 3.1

3.2 3.2

3.2

3.1 3.2

3.4 3.4

2.5 2.6 2.7 2.8 2.9 3.0 3.1 3.2 3.3 3.4 3.5

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

2014 2015 2016

% Unemployment rate

Source : Department of Statistics, Malaysia Note: All December 2015 data are revised

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Malaysia: Export of Textiles, Clothing & Footwear 2011 - 2015

2015RM13.2b 2014RM12.1b

2013RM10.7b 2012RM9.9b

2011RM11.4b

1

RM2,415.7m

2

USA

RM1,022.0mJapan

3

RM792.4mChina

4

RM788.9m

Singapore

5

RM740.9mTurkey

Export Products 2015

Export Destinations

2015

Chopped strands o glass fibres 50mm RM1,196.6 million

Garments of other textile materials RM849.8 million

Mens/boys cotton shirts RM615.6 million

Textured yarn of polyester filaments RM535.3 million

Pullovers, cardigans & similar articles of cotton - RM533.8 million

Source : Department of Statistics, Malaysia

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and You’

‘

Developments and Progress of Islamic Finance in South East Asia 2015

Favourable Demography & Growth Potential

Regulatory Efforts

Infrastructural Demand

Shariah Compliant Financial Service for Minority Muslims

Malaysia: Islamic financing assets are forecast to account for 40% of the banking sector by 2020.

Indonesia: Supported by 250 million people, its young Islamic banking sector forecast to grow fivefold from 2011 to 2015.

Brunei: 41% of the country’s banking assets is Shariah compliant as at the end of 2014, with some estimates projecting the figure to break the 50% threshold by 2020.

The enactment of Islamic Financial Services Act 2013 (IFSA 2013) in key Islamic finance jurisdiction such as the distinction and separation between Islamic deposit and Islamic investment product classification in the Islamic financial institutions (IFI) liability side.

Failure of an IFI to adhere to the Shariah-compliant requirements will subject it to criminal and civil penalties.

In November 2014, Indonesia’s capital markets authority signed an agreement with the national Shariah board to move towards the centralisation of Shariah matters related to Islamic finance.

The region demand for infrastructure investment (it needs about US$60 bil a year until 2022) is likely to spur more sukuk issuances by sovereign and government-related entities.

Malaysia housed to almost two-thirds of the global Islamic debt market while Indonesia has created a milestone on every global issuance, such as launching an inaugural Wakalah-structure sukuk in 2014 and issued the largest ever single-tranche US$ Sukuk in May 2015.

National Budget 2015, the Indonesian government has allocated a substantial amount for infrastructure project via government sukuk issuance.

Islamic finance has a growing presence in countries such as Thailand and the Philippines where the demands for Shariah-compliant financial services are escalating.

In Thailand, Islamic banking assets sum up to US$3.8 bil, catering to Muslim population in the south.

In Philippine, as of January 2015, 61 out of 306 stocks on the Philippines Stock Exchange are Shariah-compliant.

Islamic banking assets in Singapore have grown by 73% since 2010, and are increasingly cross-border in nature.

Sources: http://www.mifc.com/index.php?ch=28&pg=72&ac=152&bb=uploadpdf http://www.islamicfinancenews.com/ifn-country-analysis-brunei

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Buku kecil TPPA di dalam versi PDF boleh di muat turun melalui pautan http://fta.miti.gov.my/miti-fta/resources/MITI_TPPA.pdf

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9,857,306 KM²

AREA

International Report

US Economic Indicators

322.4 million persons (Est. 2016)

POPULATION

2.4% (2015)

GDP^(Growth)

1.0 % (Feb 2016)

Inflation

Rate 4.9% (Feb 2016)

Unemployment Rate

Sources: www.bea.gov/newsreleases/national/gdp/2016/gdp4q15_3rd.htm, Wikipedia and Bureau of Economic Analysis

Thailand Trade Performance January-February 2016

US$34.7 billion 0.7%*

US$29.5 billion 14.5%*

Total Trade US$64.2 billion

6.9%* Trade Balance

US$5.2 billion Main Exports

Motor Cars, Parts & Accessories US$4.1 billion

Precious Stones & Jewellery US$3.5 billion

Automatic Data Processing Machines & Parts Thereof US$2.7 billion

Main Imports

Machinery & Parts US$3.0 billion

Electrical Machinery & Parts US$2.6 billion

Chemicals US$1.9 billion

Trade with Malaysia

Total Trade US$3.2 billion

Exports US$1.5 billion

Imports US$1.7 billion

Main Exports

Motor Cars, Parts & Accessories US$206.2 million

Automatic Data Processing Machines

& Parts Thereof - US$157.6 million Rubber

US$81.6 million

Main Imports

Computers, Parts & Accessories US$301.4 million

Crude Oil US$138.0 million

Chemicals US$135.0 million

Note: *Y-o-Y growth

Sources: Ministry of Commerce, Thailand

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Argentina 137.3%

Bolivia 83.7%

1 2 3

Tajikistan 80.9%

Colombia 75.4%

Algeria 72.7%

4 5

Mauritania 71.3%

France 66.6%

Nicaragua 65.8%

Brazil 69%

Guinea 68.3%

6 7 8 9 10

Note: The rate is based on World Bank’s “total tax rate”. It is “The total amount of taxes is the sum of five different types of taxes and contributions payable after accounting for deductions and exemptions: profit or corporate income tax, social contributions and labor taxes paid by the employer, property taxes, turnover taxes, and other small taxes.”

Source: http://www.businessinsider.my/wef-19-countries-with-the-highest-tax-rates-in-the-world-2015-10/#epG8vgwfWoOQoAdb.99

Countries with Highest Tax Rates

in the World

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AJCEP: ASEAN-Japan Comprehensive Economic Partnership (Implemented since 1 February 2009)

ACFTA: ASEAN-China Free Trade Agreement (Implemented since 1 July 2003)

AKFTA: ASEAN-Korea Free Trade Agreement (Implemented since 1 July 2006)

AANZFTA: ASEAN-Australia-New Zealand Free Trade Agreement (Implemented since 1 January 2010)

AIFTA: ASEAN-India Free Trade Agreement (Implemented since 1 January 2010) ATIGA: ASEAN Trade in Goods Agreement

(Implemented since 1 May 2010) MICECA: Malaysia-India Comprehensive Economic

Cooperation Agreement (Implemented since 1 July 2011) MNZFTA: Malaysia-New Zealand Free Trade Agreement (Implemented since 1 August 2010)

MCFTA: Malaysia-Chile Free Trade Agreement (Implemented since 25 February 2012)

MTFTA: Malaysia-Turkey Free Trade Agreement (Implemented since 1 August 2015)

MAFTA: Malaysia-Australia Free Trade Agreement (Implemented since 1 January 2013)

MPCEPA: Malaysia-Pakistan Closer Economic Partnership Agreement (Implemented since 1 January 2008) MJEPA: Malaysia-Japan Economic Partnership Agreement (Implemented since 13 July 2006)

7 Feb 14 Feb 21 Feb 28 Feb 6 Mar 13 Mar 20 Mar 27 Mar

AANZFTA 108 51 93 75 84 70 96 129

AIFTA 165 90 123 144 152 153 148 170

AJCEP 86 61 58 52 80 59 26 97

0 20 40 60 80 100 120 140 160 180

RM million

ATIGA 713 328 685 799 965 706 1,669 1,222

ACFTA 377 260 585 428 417 630 562 612

AKFTA 654 177 235 305 259 948 202 186

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800

RM million

MICECA 41.15 18.93 42.25 36.61 49.13 43.29 45.84 33.29

MNZFTA 0.38 0.23 0.21 0.13 2.78 0.00 0.26 0.25

MCFTA 7.87 4.82 13.14 10.73 13.97 3.48 6.18 10.64

MAFTA 45.76 23.98 34.81 29.45 44.10 48.69 32.75 134.93

-20 0 20 40 60 80 100 120 140 160

RM million

7 Feb 2016 14 Feb 2016 21 Feb 2016 28 Feb 2016 6 Mar 2016 13 Mar 2016 20 Mar 2016 27 Mar 2016

AANZFTA 824 412 793 689 800 755 899 985

AIFTA 693 412 599 642 588 673 566 641

AJCEP 222 74 160 183 212 201 150 241

ATIGA 4,199 2,079 3,612 4,642 5,227 4,551 4,586 4,675

ACFTA 1,304 720 1,647 1,702 1,642 1,598 1,354 1,425

AKFTA 929 482 828 994 921 838 827 890

MICECA 368 178 350 286 308 384 350 320

MNZFTA 14 3 7 1 16 0 5 9

MCFTA 48 34 69 54 71 33 57 65

MAFTA 438 179 393 301 489 461 349 447

MJEPA 859 479 892 831 989 766 708 926

MPCEPA 170 94 137 104 150 156 173 159

GSP 133 63 142 109 149 129 139 89

MTFTA 172 103 258 195 259 196 162 252

MJEPA 166 84 138 184 214 104 136 146

MPCEPA 89 14 24 19 20 42 26 19

GSP 23 16 28 27 28 22 18 18

MTFTA 90 35 86 122 99 72 77 139

0 50 100 150 200 250

RM million

Value of Preferential Certificates of Origin

Number and Value of Preferential Certificates of Origin (PCOs)

Number of Certificates (Provisional data)

Notes: The preference giving countries under the GSP scheme are Liechtenstein, the Russian Federation, Japan, Switzerland, Belarus, Kazakhstan and Norway.

Source: Ministry of International Trade and Industry, Malaysia

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Source : Bank Negara, Malaysia

14.2 15.0

12.5 13.0 13.5 14.0 14.5 15.0 15.5 16.0 16.5

27 Nov 4 Dec 11 Dec 18 Dec 24 Dec 31 Dec 8 Jan 15 Jan 22 Jan 29 Jan 5 Feb 12 Feb 19 Feb 26 Feb 4 Mac 11 Mac 18 Mac 24 Mac 1 Apr

US$/Oz Silver

836.0

960.0

750.0 800.0 850.0 900.0 950.0 1000.0

US$/Oz Platinum

Source : http://www.gold.org/investments/statistics/gold_price_chart/

http://online.wsj.com/mdc/public/page/2_3023-cashprices.html?mod=topnav_2_3023

Gold Prices, 27 November 2015 - 1 April 2016

Silver and Platinum Prices, 27 November 2015 - 1 April 2016

34.0

39.0

32.0 33.0 34.0 35.0 36.0 37.0 38.0 39.0 40.0 41.0 42.0

US$/Gram Gold

Malaysian Ringgit Exchange Rate with US Dollar and Pound Sterling

5.00 5.20 5.40 5.60 5.80 6.00 6.20 6.40 6.60 6.80

3.00 3.20 3.40 3.60 3.80 4.00 4.20 4.40 4.60

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2015 2016

USD = RM GBP = RM

GBP = RM 5.80 USD = RM 4.08

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Commodity

Crude Petroleum

(Brent) (per bbl)

Crude Palm Oil (per MT)

Sugar (per lbs.)

Rubber SMR 20 (per MT)

Cocoa SMC 2 (per MT)

Coal (per MT)

Scrap Iron HMS (per MT)

1 Apr 2016

(US$) 38.7 706.5 15.2 1,331.0 2,025.1 47.9 220 (high)

190 (low)

% change* 4.4 1.3 4.3 2.1 2.4 unchanged unchanged

unchanged

2015ⁱ 36.9 - 66.8 616.9 13.2 1,364.3 2,077.0 49.9 239.6

2014ⁱ 59.5 - 114.8 823.3 16.6 1,718.3 2,615.8 59.8 370.0

Commodity Prices

Notes: All figures have been rounded to the nearest decimal point

* Refer to % change from the previous week’s price i Average price in the year except otherwise indicated n.a Not availble

Sources: Ministry of International Trade and Industry Malaysia, Malaysian Palm Oil Board, Malaysian Rubber Board, Malaysian Cocoa Board, Malaysian Iron and Steel Industry Federation, Bloomberg and Czarnikow Group.

Highest and Lowest Prices, 2015/2016

Lowest (US$ per bbl) Highest

(US$ per bbl)

Crude Petroleum (Brent) (1 Apr 2016) US$38.7 per bbl

15 May 2015: 66.82015 2015

18 Dec 2015: 36.9 18 Mar 2016: 41.22016 2016

15 Jan 2016: 28.9

Lowest (US$ per MT) Highest

(US$ per MT)

Crude Palm Oil (1 Apr 2016) US$706.5 per MT

16 Jan 2015: 701.02015 2015

4 Sep 2015: 500.5 25 Mar 2016: 697.52016 2016

15 Jan 2016: 545.5

Steel Bars

(per MT) RM1,780 – RM1,900

Average Domestic Prices, 28 Mar 2016

Billets

(per MT) RM1,500 – RM1,550

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Sources: Ministry of International Trade and Industry Malaysia, Malaysian Palm Oil Board, Malaysian Rubber Board, Malaysian Cocoa Board, Malaysian Pepper Board, Malaysian Iron and Steel Industry Federation, Bloomberg and Czarnikow Group, World Bank.

Commodity Price Trends

1,827.5 1,936.8

1,977.1 1,956.8

2,052.8

2,011.8 2,084.8

2,022.3 2,070.6

2,094.9

1,976.8 2,025.1

1,700 1,750 1,800 1,850 1,900 1,950 2,000 2,050 2,100 2,150

15 Jan 22 Jan 29 Jan 5 Feb 12 Feb 19 Feb 26 Feb 4 Mac 11 Mac 18 Mac 25 Mac 1 Apr

US$/mt

Cocoa

14.9

14.4

13.1 13.3 13.1

12.7 14.0

14.8 15.1

16.0 15.9

15.2

12.0 12.5 13.0 13.5 14.0 14.5 15.0 15.5 16.0 16.5

US$/lbs

Sugar

1,081.5 1,118.5

1,088.5 1,097.5

1,063.0 1,098.5

1,137.5 1,299.5

1,262.5 1,337.5

1,304.0 1,331.0

1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400

US$/mt

Rubber SMR 20

7,591

7,286 7,267 7,853

7,148 7,063

7,296

6,742 6,940 7,029

6,963 7,008

6,900 7,088 7,113

7,434

5,000 5,500 6,000 6,500 7,000 7,500 8,000 8,500

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

2015 2016

USD/ tonne

Black Pepper

* until 1 April 2016

33.2

29.4 32.2

33.6

30.9

29.4 29.6 32.8

35.9 38.5

39.4 39.5

36.8 33.6

28.9 32.2

34.7 34.1

33.4 33.0 35.1

38.7

40.4 41.2 40.4

38.7

25 27 29 31 33 35 37 39 41 43 45

8 Jan 15 Jan 22 Jan 29 Jan 5 Feb 12 Feb 19 Feb 26 Feb 4 Mac 11 Mac18 Mac25 Mac 1 Apr

US$/bbl

Crude Petroleum

Crude Petroleum (WTI)/bbl Crude Petroleum (Brent)/bbl 545.5 546.0

566.5 579.0

612.0

651.0653.5647.5 653.5 667.0

697.5 706.5

500 525 550 575 600 625 650 675 700 725

US$/mt

Crude Palm Oil

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Sources: Ministry of International Trade and Industry Malaysia, Malaysian Palm Oil Board, Malaysian Rubber Board, Malaysian Cocoa Board, Malaysian Pepper Board, Malaysian Iron and Steel Industry Federation, Bloomberg and Czarnikow Group, World Bank.

Commodity Price Trends

190.0 190.0190.0

200.0 200.0

180.0

190.0 190.0 190.0

220.0 220.0 230.0

170.0

170.0 170.0 170.0 170.0

160.0 160.0 160.0 160.0

190.0 190.0 200.0

140 150 160 170 180 190 200 210 220 230 240

20 Nov 27 Nov 18 Dec 31 Dec 8 Jan 29 Jan 12 Feb 19 Feb 26 Feb 11 Mac 21 Mac 25 Mac

US$/mt

Scrap Iron

Scrap Iron/MT (High) Scrap Iron/MT(Low)

47.8 47.8

47.7

47.4

47.5 47.5

47.6 47.6 47.6 48.0

48.0

47.9 47.9

47.0 47.2 47.4 47.6 47.8 48.0 48.2

8 Jan 15 Jan 22 Jan 29 Jan 5 Feb 12 Feb 19 Feb 26 Feb 4 Mac 11 Mac18 Mac25 Mac 1 Apr

US$/mt

Coal

68.0

63.0

58.0 52.0

60.0 63.0

52.0 56.0 57.0

53.0

47.0

41.0 42.0

47.0

38.0 43.0 48.0 53.0 58.0 63.0 68.0 73.0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

2015 2016

US$/dmtu

Iron Ore 1,815 1,818

1,774 1,819

1,804

1,688 1,640

1,548 1,590

1,516 1,468

1,497 1,481

1,531

1,400 1,450 1,500 1,550 1,600 1,650 1,700 1,750 1,800 1,850

2015 2016

US$/ tonne

Aluminium

5,831 5,729

5,940 6,042 6,295

5,833

5,457

5,127 5,217 5,216

4,800 4,639

4,472 4,599

4,000 4,500 5,000 5,500 6,000 6,500

2015 2016

US$/ tonne

Copper

14,849 14,574

13,756 12,831

13,511 12,825

11,413

10,386 9,938 10,317

9,244

8,708 8,507 8,299

7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000

2015 2016

US$/ tonne

Nickel

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Lemon Sky Animation Sdn Bhd is a Malaysia computer generated imagery (CGI) production house with industry professionals from a wide range of artistic and technical expertise including CGI artists and games art production. Lemon Sky has been aggressively expanding in both size and project content during the past recent years. The studio was involved with many Triple A games development as well as many animation projects from other countries, thus, in terms of portfolio, Lemon Sky is indeed very strong. For those not well versed in games’ lingo, Triple A (AAA) is a classification term used for games with the highest promotion and development budgets. Lemon Sky has been involved in the development of many popular and successful Triple A titles such as the Resident Evil series, FIFA 14 and Call of Duty. The studio currently has more than 200 staff and soon will be expanded to 400 plus. Such scale is very rare to be seen at the local industry level which is a perfect testimonial on their recent success.

LEMON SKY (HQ)

10-2, Symphony House, Jalan PJU 1A/46, 47301 Petaling Jaya, Selangor.

Email: inquiries@lemonsky.tv Telephone: +60 3-7842 6155

Their achievement is undeniable. Lemon Sky also managed to secure profitable project abroad. During World Audio Visual Trade Exhibition (MIPCOM) that was held in Cannes on October 2014, Malaysian content providers have clinched 18 deals worth RM132.1 million, surpassing the target of RM110 million set by the National Film Development Corp Malaysia (FINAS). Lemon Sky has one of the hot deals inked by Malaysian companies to co-produce an animation entitled ‘Bubble Boy’ worth RM15 million with an Australian visual effects and animation company.

In other news, on 12 December 2014, it was a momentous event when BANDAI NAMCO signed a Memorandum of Understanding (MoU) with Lemon Sky Animation Sdn Bhd. In attendance was Dato’ Yasmin Mahmood, CEO of Multimedia Development Corporation (MDeC), who witnessed the exchange of signatures between Mr. Cheng Fei Wong and Mr. Nakatani

Hajime, CEOs of Lemon Sky and BANDAI NAMCO Studios respectively. With this big break, Lemon Sky will kick start their entry into full-fledged games development, and will be forming a new content creation team in charge of helping in the development of BANDAI NAMCO games in 2015.

This move will open up possibilities for more Malaysian companies and Lemon Sky CEO, Mr. Cheng Fei Wong, agrees as much. “It’s an exciting prospect for our company as we are always looking for ways to raise the bar for Malaysia’s game industry. BANDAI NAMCO Studios is a global powerhouse in game development, and given our position as the biggest game production house in the country, this is a good platform, great opportunity and a strategic move to broaden our market in South East Asia,” he said. He also likens it to leveling up in a game; that the MoU is that level up for the Malaysian games industry.

For many, BANDAI NAMCO needs no introducing. The company is among the top in the world when it comes to games development and publishing. The PAC-MAN we remember fondly from our childhood, Tekken, SOULCALIBUR, NARUTO, and more are all games developed by them. While for those who are not familiar with the local games development scene, meet Lemon Sky, the biggest name and company in games and animation. Fans of BANDAI NAMCO’s “Tales of” series will be pleasantly surprised to know that Lemon Sky had a hand in the development of “Tales of Zestiria”, plus a number of AAA titles.

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The World Halal Week, 30 March - 2 April 2016 MITI Programme

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World Halal Conference, 30-31 March 2016

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Launching of Malaysia Aerospace

Industry Association, 28 March 2016

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Announcement

MITI Weekly Bulletin (MWB) Mobile Apps

MITI MWB APPs is now available for IOS, Android and Windows platforms. MWB APPs can be download from Gallery of Malaysian Government Mobile APPs (GAMMA) by following simple step as provided below:

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